Materials Cost Management -

An easy guide

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It is our biggest cost so why do we spend so little time thinking about it?

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1. Materials and the cost responsibilities

This has got to change!

2. Design and materials cost reduction

Expenditure committed and actual spend for a typical product.

"We were late in starting the project so we had to make up the time somewhere".

3. Product features

Over-design is rarely free and adds costs which cannot be recovered in the price.

4. Getting it wrong

The cost of getting it wrong during product development.

Get it wrong and your materials costs will be built into the product for life!

5. "Pentamode"

Pentamode shows you the way forward.

6. Design for manufacture

Design for the most economic method of meeting the brief.

7. Current products and materials cost reduction

Current products must be ruthlessly examined for every materials cost reduction idea possible.

For some hints on what to do next, see Materials Costs "Hit List" - Things to do Next.

 

Last edited: 11/03/10 

Tangram Technology Ltd. 1998

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